NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Are Low Interest Rates Deflationary? A Paradox of Perfect-Foresight Analysis

Mariana García-Schmidt, Michael Woodford

NBER Working Paper No. 21614
Issued in October 2015

---- Acknowledgments ----

We would like to thank Gauti Eggertsson, Jamie McAndrews, Rosemarie Nagel, Jon Steinsson and Lars Svensson for helpful comments, and the Institute for New Economic Thinking for research support. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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